June 5, 2013

Amazon forays into India through marketplace-model online store

Amazon, an online retail giant, has marked its foray into Indian market with the launch of an exclusive marketplace-model store in the country.

By admin-demo

Amazon, an online retail giant, has marked its foray into Indian market with the launch of an exclusive marketplace-model store in the country.

The retailer has preferred marketplace concept store to tackle the federal regulations that restrict overseas companies to set up a retail unit in the sub-continent market.

Through this model, Amazon will assume the role of an accumulator offering merchandise of third party retailers, who opt to list their products on the Indian website.

Commenting on the launch, Amazon country manager Amit Agarwal told The Economic Times that the current model is in line with Indian regulations.

The launch is aimed at becoming an efficient sales medium for the Indian retailers, aiding them in their online growth process, added Agarwal.

Amazon international expansions vice present Greg Greeley, further, remarked that the company has formulated similar model in other countries with sellers owning the inventory, while Amazon consummates the sale.

Initially, Amazon India is expected to introduce 7 million book titles as well as around 13,000 movie options for the online shoppers; however, the company plans to list additional categories including cameras and phones.

In addition, the Indian subsidiary is offering an end-to-end logistics solution, Fulfillment by Amazon, to retailers who desire to outsource the services.

Amazon, meanwhile, is also engaged in talks with Indian government seeking permissions to allow overseas e-commerce companies to enter the country through foreign direct investment (FDI).

Currently, FDI is confined to brick-and-mortar retailers.

In India, Amazon operates a price-comparison website, Junglee.com.